Even though the mortgage rates have had a historic increase over the last few months, it has not seemed to have detrimental effects against the quantity of homes available for sale. According to the National Association of Realtors 2016 ended on a high note with strong sales numbers being reported which is helping to drive inventory down across the board. As it looks like currently, right now 2017 Home Supply Lowest In History is being viewed to start the year. This seems a little odd since mortgage rates are rising, but as of right now this hasn’t stopped buyers from wanting to purchase the home of their dreams. You can almost make the assumption that since people were seeing interest rates rise that they were betting that rates would keep rising so they decided to pull the trigger and get their home purchased sooner than later. As data has shown, the home supply has done nothing but stay the same or decrease month-to-month in 2016 as rates were some of the lowest we have seen. The combination of strong home sales and not as many people looking to sell their home has created a perfect storm and conditions for 2017 Home Supply Lowest In History.
Even after the Presidential Election buyers in the market did not seem fazed by this and even though mortgage applications were falling, the applications and loans that were already in motion still closed as scheduled. With the strong sales pushing into the end of the year in 2016 when less people are selling their homes historically it has allowed for inventory levels to drop to never before seen quantities.
The current situation of the home buying market has the entire market shifted into a definite seller’s market where buyers rarely have any power when going into a negotiation to purchase a home. The National Association of Realtors also reported that 2016 home sales ended at a little under 5.5 million homes sold on an annualized basis which is the best year that has been witnessed since 2006 when the real estate bubble and Great Recession was about to start. With the market solidly poised to be in a seller’s market, the extremely low levels of inventory will keep this trend as we move farther into 2017/ With 2017 Home Supply Lowest In History there are only a little under 4 months of inventory available given the recent sale rate of homes witnessed. With just over 1.5 million homes available for sale, this is over a 10% decline from this time last year when inventory levels were already low and seller’s had a lot of power already when selling their homes. Given the low levels and the seller’s market that we are witnessing, this has driven home prices up this year another 4% and has sustained 58 months or nearly 5 straight years of monthly home value gains. The thought with ever increasing home values is that it may start to entice people to sell their homes as they have hopefully regained a lot of equity lost during the Great Recession or this will prompt home buyers from the last couple years to sell their homes, make a profit on the sale, and buy a new home before interest rates increase again. If this mindset takes over it might actually prompt inventory levels to finally start increasing as we push into 2017. With this increased inventory, you could possibly see home values begin to slow and stabilize a market that right now is 100% in the seller’s favor.
If you are a first-time home buyer or in the market to purchase a home again, then you need to be prepared for the new dynamics of the market that have taken hold as 2016 has come to an end. With 2017 Home Supply Lowest In History if there wasn’t any new inventory to come to the market, there would be zero homes available by April 2017. Given this situation of the market, if you are a buyer you need to have a defined plan in preparation of getting a home purchased. This is where the professionals here at Loan Consultants can help you have a step up on the competition and have you prepared to purchase a home as soon as you set your eyes on your dream home.
Unlike other lenders that will issue you a pre-qualification by just talking to you over the phone, this can wind up being detrimental to your home purchasing plan. With just a pre-qualification you can find yourself getting a loan denial because your lender has not done their proper research into your credit situation that they don’t know of items that can sabotage your loan. At Loan Consultants, we may take an extra day or two, but we will work with you to get all the documentation needed to issue you a solid pre-approval letter. We will run your credit, look at pay stubs and W2s, and even tax returns if needed. Since we are looking at everything from your credit, to debts, and even assets, we can confidently say what we can give you an approval for. There is no guessing with us as we will not issue a pre-approval unless we are at least 99% certain we can close the loan. We don’t want to waste anyone’s time, but we also want to be as thorough as we can because we have your best interests in mind. These days you will be lucky to even find a realtor who will entertain your offer without a solid pre-approval. These aren’t the times for a buyer’s market so seller’s can make sure they have a rock solid borrower before accepting the deal.
As you can see the 2017 Home Supply Lowest In History you need to be 100% in the know of what you are getting into with this market if you plan on purchasing a home. A majority of our business here at Loan Consultants comes from borrowers who received poor pre-approvals and get denied when their file gets to underwriting. Be confident that when you come here, we will make sure we do everything we can to give you a near 100% confident approval. So if you are ready to get your home purchase started, please call us ASAP at 888-900-1020 any time day, nights, weekends, or holidays. We work every day and don’t take any days off in order to make sure you are 100% satisfied with your service and taken care of!